Observe Medical (OBSRV) Trading Update summary

Commercial Progress and Market Expansion

• Oona Meter and UnoMeter products achieved 61% growth at half-year, with global distribution in 44 countries and order intake exceeding NOK 25 million on a 12-month rolling basis.

• 91% of the geographical coverage that previously generated NOK 360 million in revenue has been reestablished, with solid order activity across multiple countries.

• Growth is driven by distributor tender wins and increasing market share in Europe, Asia, and South America, with positive customer feedback on product quality.

• Continuous growth in order intake for over two years, with recurring revenue from repeat orders in most markets.

Product Development and Innovation

• Finalizing and validating a new infection control element for Oona Meter Safety Plus and preparing to launch UnoMeter Safeti Max, with pilot studies underway and production ready.

• Next-generation products, including Safety Max and Safety, are planned for launch within the year, leveraging patented technology to reduce CAUTI risks.

• Sippi® offers automated, digital urine measurement with wireless data transfer, improving accuracy and reducing infection risk.

• Product pipeline targets ICU challenges: infection control, measurement accuracy, frequency, and staff time reduction, with upselling to existing clients and portfolio expansion.

• Full conversion to Safety could increase market potential from NOK 1.5 billion to NOK 4 billion, targeting US and Asian markets.

Financial and Operational Updates

• Significant debt reduction from NOK 110 million to NOK 40 million, improving financial position, and completed a private placement with a new cornerstone investor.

• Operating expenses are closely managed, with a current run rate of about $2 million per quarter, and no new OpEx will be added until revenue growth supports it.

• Completed acquisition and integration of Biim Ultrasound and UnoMeter product range, with regulatory upgrades and commercial launches.

• Completed full transfer of IP rights from Convatec.